The festival was started by Panamanian pianist and jazz composer Danilo Perez. Perez created the festival in the hopes of establishing a forum for the best jazz musicians to come together and collaborate, while also allowing the people of Panama to be exposed to the best jazz music in the world.
According to the festival website, the festival brings together a group of teachers from across the globe to teach master classes in composition, dance, improvisation, jazz history, performance and other subjects related to jazz music. The classes are open to teachers and students of all ages and skill levels. The festival also provides scholarships to needy Panamanians who are interested in jazz music.
The festival, which started as a weekend event with an attendance of about 2,000, has blossomed into a six-day affair. The 2010 show featured performances Monday through Friday, with general tickets to each performance costing $10 and student tickets costing $5. According to the Panama Jazz Festival website, the festival culminates in a free open-air concert at the Plaza de la Catedral. In 2010, more than 10,000 people attended the outdoor concert according to JazzTimes.